Morning Comments 3/18/2013
Monday, March 18, 2013, 9:09 amSubmitted by: Kyle Lehman
Our markets are sharply lower this morning with corn trading 5 lower while soybeans trade 14 lower. The dollar is sharply higher as the IMF (international monetary fund) has provided $10 billion to bail out the small country of Cyprus off the coast of Turkey. This has investors running to safer investments that aren’t tied to the Euro. EU finance ministers have agreed to force citizens to share the cost of the bailout by incurring a bank deposit tax of 6.75% on all deposits made into Cyprus banks. Talk about a way to kill consumer confidence. It is rumored that citizens with more than 100 euros in their account were assessed a 20% tax (20% of their account disappeared overnight). With these drastic measures being taken traders are thinking the European debt crisis may be worse than initially thought.
It seems the ground hog may have been wrong this year with forecasts showing winter may extend a few more weeks. Over the next 10 days the Midwest and Central plains are projected to see below normal temperatures with nearly normal precip.
South American weather remains dry providing harvest to continue without delays. Brazil harvest is seem at 58% vs. 55% last year and 42% on average. Logistical concerns are still in question with port lines in Brazil at 14.9 miles long, up from 11.8 miles long just one day ago.
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